Pressure grows on service sector

Travel firms were especially hard hit during the quarter

Firms in the professional services sector have seen their biggest drop in business in a decade, according to a survey from employers' group the CBI.

A balance of 25% of professional service firms, from law firms to accountants, also saw lower profits.

The results suggest that the impact of the slowdown that had hit bars and cinemas in the CBI's previous survey is spreading to other sectors.

Analysts are increasingly suggesting that a recession is on the horizon.

Official data released on Friday showed that UK economic growth came to a halt in the three months to June, with no growth from the first quarter of 2008.

Ian McCafferty, the CBI's economic advisor, said service sector firms were "under pressure".

"This reflects much tougher trading conditions for business and professional firms, after a period when business trends had been holding up in the face of the slowing economy".

Expectations for firms to grow fell to a record low, as it becomes increasingly tough for firms to get access to funding in light of the credit crunch.

One sector that had particular problems was the travel industry.